Economic Valuation of Environmental Quality Using Property Auction Data: A Structural Estimation Approach

Tadao Hoshino () and Hayato Nakanishi

Land Economics, 2016, vol. 92, issue 4, 703-717

Abstract: This study proposes a method to economically evaluate environmental quality using property auction data. Our approach is consistent with microeconomic auction theory and can directly estimate the value function from the data, a task that is often difficult when using conventional revealed preference methods such as the hedonic approach. We use a method of simulated moments to estimate the value function, which in turn is used to calculate the economic value of environmental quality changes. We apply this method to data on foreclosure property auctions in Tokyo in order to economically evaluate hypothetical improvements in neighborhood fire risks.

JEL-codes: Q51 (search for similar items in EconPapers)
Date: 2016
Note: DOI:
References: Add references at CitEc
Citations:

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/92/4/703
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:92:y:2016:i:4:p:703-717

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().